In a relatively bland session at the Malta Stock Exchange yesterday, deals were recorded in six listings. Trading volume was generally low, except for trading in the local post operator which saw an unusually high volume. For the second day running, the MSE Index remained stable at 4,163 points with gains in MaltaPost and Bank of Valletta being offset by declines in three other components.
Maltapost was the day's top gainer with the postal services provider gaining 1.3 per cent to reclaim the €0.81 level. Turnover here consisted of a total of 500,000 shares traded in very rapid succession across 6 transactions. At the end of the session 5,000 shares were best bid at the €0.80 level while a further 20,000 shares remained outstanding on the offer side at €0.815.
Bank of Valletta started trading around mid-session, with the largest part of the total turnover for the day being struck at the previous price of €4.65. However, a trade of just 46 shares, executed in the dying minutes of the session, pushed the price up to the €4.67 level. This represents an increase of 0.43 per cent on its previous price on a total volume of 5,796 shares.
Single transactions were executed in International Hotel Investments, Go and Malta International Airport respectively the third, fourth and sixth largest companies on the exchange. These transactions were instigated by sellers who forced declines in their respective share prices. IHI was the least hit in monetary terms with the equity closing the day at €1.049. Elsewhere, a mere 500 shares in Go brought the price down by 0c2 to €2.598 ahead of an analysts meeting in the afternoon.
Malta International Airport suffered from a lack of bids in the market shedding, thus shedding 5c8 or 1.9 per cent to close at €3.062, its lowest level for the past three years.
HSBC Bank Malta was the day's non-mover when 7,000 shares were traded across four deals at €3.80.
Weekly eurozone economic review
Fresh worries emerged regarding the health of the economy as the eurozone economy rebounded less strongly than previously expected in the first quarter of this year. Gross Domestic product rose 0.7 per cent quarter on quarter. Central Bank President Jean Claude Trichet also voiced his concerns regarding the uncertainties surrounding the outlook for growth, with downside risks mainly related to further unanticipated increases in oil prices. Furthermore, economic releases are also indicating that activity is ebbing within this region. Some indicators, like the recent Industrial Production set off recession alarm bells as the chances of a recession, that is, two consecutive quarters of negative growth in the euro area has risen.
French industrial production collapsed in May, down 2.6 per cent against the consensus expectation of -0.5 per cent. French exports were also sharply down during the same month. Italy's data was not much better with a slump in industrial production during May, heightening the likelihood that the Italian economy is on the brink of a fully fledged recession. In Germany, industrial production fell by 2.4 per cent month on month in May with the manufacturing output falling by 2.6 per cent. It is quite visible that the German manufacturing sector is suffering in the current economic scenario. The largest economy within the eurozone also experienced narrowing trade surplus figures during May on the back of falling exports.
This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.